Higher net interest income drives the revenue increase
JPMorgan Chase experienced a rise in its earnings from both the past quarter and previous year despite a decline in its origination volume.
After dropping to $7.1 billion in the fourth quarter of 2018, the bank’s profits soared to $9.2 billion in the first quarter of 2019. This increase pushes the bank’s total earnings per share to $2.65, inching up from $2.37 in Q1 of 2018 and $1.98 in Q4 of the same year.
JPMorgan’s revenues also climbed to $29.9 billion in the first quarter of 2019 from $26.8 billion in the fourth quarter and $28.5 billion in the first quarter of last year.
Higher net interest income as a result of higher deposit margins and balance growth played a major role in the 15% increase of the majority of consumer and business banking revenue, up $6.6 billion in Q1 2019.
“In consumer and community banking, client investment assets topped $300 billion, with record new money driven by our physical and digital channels,” said JPMorgan Chairman and CEO Jamie Dimon. “Consumer spending remains robust with credit card sales and merchant processing volume up double digits.”
However, JPMorgan’s home lending division went down as revenue fell 11% to $1.3 billion due to lower net servicing.
“In the first quarter of 2019, we had record revenue and net income, strong performance across each of our major businesses and a more constructive environment,” Dimon said. “Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy, and consumer and business confidence remain strong.”
